Boeing (BA) stock is trading higher Thursday in premarket trading as investors weigh production and certification updates against a stronger broader market. Nasdaq futures are up 1.15%, while S&P 500 futures have gained 0.88%.

Boeing Flags 737 Wing Bottleneck, 777X Engine Delay

Boeing said Wednesday that wing production remains the main bottleneck in its 737 production ramp. The aerospace giant is also dealing with certification hurdles and slower-than-expected production increases.

At Morgan Stanley's 14th Annual Laguna Conference, CEO Kelly Ortberg said Boeing has reached a 737 production rate of 47 aircraft per month. However, it has yet to stabilize at that level.

Wing production in Renton remains the primary constraint. Ortberg said the broader supply chain, including engines, is in good shape.

MAX 10 Certification Nears

Meanwhile, Boeing expects 737 MAX 10 certification "very soon." Ortberg said flight testing is complete, leaving documentation and regulatory review as the remaining steps.

The MAX 10 represents roughly 30% of Boeing's 737 backlog.

However, the 777X faces another hurdle. Boeing is awaiting completion of GE Aerospace (GE)'s engine mid-seal certification plan before it can begin ETOPS testing.

Some testing could spill into next year. Still, Boeing continues to target 2027 deliveries, with no change to its plans for the initial aircraft.

Engine deliveries are also slowing Boeing's effort to raise 787 production from eight to 10 aircraft per month. The company now expects the required engine delivery performance closer to year-end.

China Orders, Strike Risk In Focus

Ortberg also tempered expectations for a potentially large China aircraft order.

He clarified that Boeing did not receive a roughly 200-plane order earlier this year. Instead, Chinese officials indicated plans to move forward with purchases. Ortberg expects orders to emerge incrementally and be announced by individual airlines.

Meanwhile, a potential SPEEA strike could effectively halt the 777X certification program until engineers return. It could also disrupt 737 production.

Boeing is working to avoid a stoppage before the current contract expires Oct. 6.

Free Cash Flow Upside Narrows

CFO Jay Malave reaffirmed Boeing's 2026 free cash flow forecast of $1 billion to $3 billion. The company currently sees about $2 billion as the framework.

However, slower-than-expected 737 and 787 production ramps through year-end make results above the midpoint less likely than previously expected.

Technical Analysis

Despite Thursday's premarket gain, Boeing remains below several key moving averages.

At $204.25, the stock is 2.8% below its 20-day simple moving average of $210.21 and 6% below its 50-day SMA of $217.30. It is also 7.6% below its 200-day SMA of $221.10.

That keeps the longer-term technical picture weak.

Momentum also remains soft. The MACD is below its signal line, while the histogram is negative. That suggests buying momentum has weakened.

The $215.50 level remains key resistance. It sits near the 50-day exponential moving average of $215.85. A sustained move above that area could improve the near-term setup.

Meanwhile, $204 is key support. A break below that level could expose Boeing to further downside.

Analyst Outlook

Boeing carries a Buy consensus rating with an average price forecast of $273.13.

Argus Research upgraded Boeing to Buy with a $265 price forecast on Aug. 11. Tigress Financial maintained a Buy rating and raised its forecast to $305 on Aug. 6. BNP Paribas upgraded the stock to Outperform and raised its forecast to $300 on Aug. 3.

MarketDash Edge Rankings

The MarketDash Edge scorecard shows weak Momentum and Value scores for Boeing.

Its Momentum score stands at 22.9, consistent with the stock trading below major moving averages. Its Value score is 26.24.

For the technical picture to improve, Boeing would need to reclaim the $215.50 resistance area and hold above it.

ETF Exposure

Boeing has a 4.01% weighting in the Corgi Aerospace & Commercial Aviation ETF (AV), a 9.07% weighting in the iShares U.S. Aerospace & Defense ETF (ITA) and a 6.88% weighting in the Invesco Aerospace & Defense ETF (PPA).

Because Boeing has meaningful weightings in these funds, ETF flows can contribute to buying or selling pressure in the stock.

Price Action

BA Price Action: Boeing shares were up 1.09% at $204.17 in Thursday's premarket trading, according to market data.